Pundits have written this budget off as modest, and even better than expected after all the hype over predicted austerity measures. Finance Minister Flaherty himself emphasized that cuts to spending are much smaller than the reductions in the mid-1990s.
In truth, Canadians are about to lose a lot more than pennies in a budget that delivers substantial and politically symbolic cuts. In combination with unilateral changes to federal-provincial transfers, actions taken in the budget are designed to further erode the presence of the federal government in the lives of Canadians—a strategy that translates into the laying off thousands of public servants and elimination of key public programs.
The federal government’s announcement last week of possible reforms to the retirement income system highlights the fact that financial decisions are never just that. We must consider the social implications behind the numbers and how they reflect our values as a nation. The 2012 federal budget will soon be tabled, and Canadians have the opportunity to make their voice heard.
On June 6, Finance Minister Jim Flaherty introduced a new 2011 Budget. (The March Budget was not adopted before the government was defeated in the House of Commons). The June Budget only contained two new provisions: the elimination of the subsidies for political parties and a $2.2 billion transfer to Quebec in support of tax harmonization. Because the June Budget is essentially the same as the March Budget, we re-offer here our commentary on the March Budget.
Finance Minister Jim Flaherty said “Leadership is about finding a balance between needs,” but unfortunately he delivered a budget that ignored the needs of Canadians. Budget 2011 revealed that the government’s priorities are vastly different than the priorities of Canadians. While Canadians want and need a response to social and environmental deficits, Budget 2011 offered a jobs-based approach to economic recovery, a few social policy crumbs, and more “boutique taxes.” Budget 2011 was rich in rhetoric and poor in action, proposing tinkering rather than real change.
FOR IMMEDIATE RELEASE
Ottawa, ON: March 23, 2011 – Citizens for Public Justice (CPJ) is disappointed that the federal budget did not address the real needs of Canadians, ignoring the social and environmental deficits.“This budget offers tinkering instead of real change,” said Joe Gunn, executive director. “Instead of a poverty elimination strategy, the government is pursuing a jobs-based approach to recovery that just isn’t sufficient.”
The recession has had a tremendous impact on Canadians. Job losses and a faltering safety net have added hundreds of thousands of people to the population of Canadians living in poverty. Economic stimulus and deficit spending are most certainly required to confront this vulnerability. Measures to create and sustain jobs and to build a strong and healthy country are needed. But this cannot be done at the expense of those on the margins, excluded from mainstream society.
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